Before the mid-2000s, home buyers were excited, optimistic and eager to embark on the challenge of home ownership. But when the real estate bubble burst, as many predicted it would for years, many of these homeowners were hit with unprecedented home value losses.
So the question now is does it still make sense to purchase a home in today’s real estate climate? Is owning a home still an American dream or a potential nightmare?
Have the Prices Hit “Bottom?”
The first issue to explore when deciding if it still makes sense to buy a house now is if the real estate prices in your area have bottomed out or if the prices are at least close to the bottom. Examine the historical market prices of homes in your chosen area on a site like Zillow. Did the average prices make a steep decline and then remain steady for a year or more? Is it still on a decline? If yes, that may be an indication that the prices are as low as they will go and it is a smart decision to buy. Consult with a reputable real estate agent from that area before making a final decision—they are more familiar with trends than the average buyer.